Mari Petroleum Company Limited (MARI) Q3 Earnings Preview:
AKD Research has just released an update on Mari Petroleum Company Limited’s previous quarter’s financial results. Here are the important points from their earnings preview.
Expected Earnings:
In the upcoming earnings release for the third quarter of the fiscal year 2024 (3QFY24E), Mari Petroleum Company Limited (MARI) is anticipated to report a Profit After Tax (PAT) of PkR 20 billion. This translates to an Earnings Per Share (EPS) of PkR 150.2. Compared to the previous quarter, this marks a 9% increase, while on a year-on-year basis, it signifies a significant 22% rise.
Factors Driving Earnings Growth:
The expected incline in earnings can be attributed to several factors. One of the primary drivers is the company’s achievement of its highest ever quarterly gas production, estimated at 840 million cubic feet per day (mmcfd). This represents a notable increase of 5% quarter-on-quarter (QoQ) and 13% year-on-year (YoY).
The surge in gas production is mainly credited to the rebound in production from the Mari field. In the previous quarter, there were declines due to reduced offtakes from fertilizer customers. However, in the outgoing quarter, production bounced back, contributing significantly to the overall increase in earnings.
Additionally, Mari Petroleum Company Limited has undertaken prospecting expenditures during the quarter, which are expected to remain higher by 65% QoQ. This increase is largely attributed to drilling works in the Mari, Block-28, and Karak blocks.
Overall Performance:
As a result of these factors, Mari Petroleum Company Limited is poised to achieve its highest ever nine-month earnings, totaling PkR 57.5 billion. This corresponds to an impressive EPS of PkR 431.3, reflecting a substantial increase of 43% YoY.
| Item | 3QFY24E | 2QFY24A | QoQ | 3QFY23A | YoY | 9MFY24E | 9MFY23A | YoY |
|---|---|---|---|---|---|---|---|---|
| Net Sales | 49,976 | 45,539 | 10% | 37,838 | 32% | 143,721 | 98,840 | 45% |
| Royalty | 6,019 | 5,756 | 5% | 4,674 | 29% | 17,766 | 12,356 | 44% |
| Op. Exp. | 7,187 | 7,022 | 2% | 6,641 | 8% | 21,827 | 16,178 | 35% |
| Exploration Exp. | 2,420 | 1,465 | 65% | 3,816 | -37% | 5,676 | 9,539 | -40% |
| Operating profit | 34,349 | 31,295 | 10% | 22,707 | 51% | 98,451 | 60,767 | 62% |
| Finance cost | 601 | 702 | -14% | 451 | 33% | 2,035 | 1,323 | 54% |
| Finance Income | 2,284 | 1,606 | 42% | 4,644 | -51% | 6,382 | 6,858 | -7% |
| Other charges | 2,399 | 2,137 | 12% | 1,630 | 47% | 6,787 | 4,175 | 63% |
| PAT | 20,032 | 18,361 | 9% | 16,430 | 22% | 57,536 | 40,291 | 43% |
| EPS-Adjusted | 150.2 | 137.6 | 9% | 123.2 | 22% | 431.3 | 302.0 | 43% |
| DPS-Adjusted | – | 98.00 | – | 0.0 | – | 98.0 | 89.0 | 10% |
Conclusion:
In conclusion, Mari Petroleum Company Limited is expected to deliver strong financial performance in the third quarter of fiscal year 2024. The anticipated increase in earnings is primarily driven by record gas production and higher prospecting expenditures. These factors position the company for continued growth and success in the energy sector.
Disclaimer:
The information in this article is based on research by AKD Research. All efforts have been made to ensure the data represented in this article is as per the research report. This report should not be considered investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.
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